Buildings insurance explained Buildings insurance problem solvers
Even if one of your bedrooms is used as a study, you need to tell your insurer about it
What's the difference between sum-insured and bedroom-rated?
There are different ways to select the level of cover you need. A sum-insured policy involves working out the rebuilding cost of your home (not the market price but the cost of rebuilding the property from scratch) and the insurer calculates your premium on that basis.
A bedroom-rated policy is based on the number of bedrooms your home has, doing away with the need to calculate exact costs. There is however a maximum upper limit to this cover.
How do I value an 18th-century cottage for buildings insurance purposes?
You should insure your house for the full rebuilding cost. As yours is an older property, it's not so easy to calculate.
If you haven't had the property surveyed recently, ask a chartered surveyor to prepare a valuation for insurance purposes – you can find a surveyor at the Royal Institution of Chartered Surveyors. See the Building Cost Information Service for more about rebuilding costs.
I use one bedroom as a games room and another as a study. How many bedrooms shall I tell my insurers I have?
Insurers will want to know how many rooms were originally designed for sleeping in, even if they are now used for a different purpose. Your insurer may also want to know whether any rooms have been converted into bedrooms.
What’s accidental damage cover?
On a buildings insurance policy, this protects against damage you cause to your building or fixtures and fittings. Standard policies include only limited cover, for example accidental damage to glass in doors, windows and skylights, and damage to bathroom fittings such as baths and sinks.
You can pay extra to extend accidental damage cover to a wider range of problems. Typically this costs between £20 and £100 a year on top of your premium.
I took out buildings insurance recommended by my mortgage lender – can I switch to a cheaper policy?
A mortgage lender will insist you have buildings insurance so the security of its loan is protected.
Often the lender will recommend an insurer and arrange the cover for you, largely because the lender earns commission from the named insurer. However you can arrange your own cover – often much more cheaply.
If doing this, the lender will want to check the policy is adequate and may charge you a 'switching fee'. Your new insurer might be willing to pay this fee for you.
If I live in an area at risk of flooding, will I still be able to get insurance?
Currently, there’s an agreement between the government and insurers that insurers will continue to offer cover to existing customers living in areas at high risk of flooding so long as the government commits sufficient money towards maintaining and improving flood defences.
What can I do to protect against burst external water pipes?
Not all buildings insurance policies will cover damaged or burst water supply pipes, and many exclude problems stemming from wear and tear, so if you like in a house that is likely to have old pipes providing mains water, it may be worth checking to see if your water company provides a free pipe repair or replacement scheme. If your water company doesn't offer a repair scheme (e.g. Northern Ireland Water) and your home insurance also excludes water supply pipes to some extent, you could consider using a specialist insurer or broker.
Is insuring a flat different from insuring a house?
Flats are generally smaller than houses, but some insurers charge mansion-style premiums, so it's definitely worth shopping around.
Will I be charged more if I pay by instalments?
Some insurers, but not all, charge extra if you pay by monthly instalments rather than a single annual premium.
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